Market Overview

4 Reasons Behind Stifel's Neurocrine Bull Thesis

Share:
4 Reasons Behind Stifel's Neurocrine Bull Thesis

Neurocrine Biosciences, Inc. (NASDAQ: NBIX), which already has two strong drugs in the market in the form of Ingrezza and the recently approved elagolix, has a promising pipeline ahead, according to Stifel. 

The Analyst

Analyst Paul Matteis initiated coverage of Neurocrine with a Buy rating and $137 price target. The stock was added to Stifel's "Select List." 

The Thesis

Notwithstanding the run-up in shares, Neurocrine stock has scarcity value in the midcap space due to its "blockbuster lead asset, strong patent protection, multiple shots on goal and near-term profitability," Matteis said in the initiation note. 

These factors give a positive twist to Neurocine's long-term growth story even in the presence of very few attractive near-term clinical catalysts, the analyst said.

Stifel's bullish stance is predicated on four factors, Matteis said: 

  • Ingrezza, the company's lead asset for tardive dyskinesia, possesses blockbuster potential, the analyst said: nearly 8,000 patients who took Ingrezza in the second quarter and represent a small fraction of the total candidate pool. The analyst estimates that Ingrezza will hit the $1-billion mark in tardive dyskinesia sales in 2021.
  • The belief that Ingrezza has a reasonable chance of succeeding and expanding its market in Tourette's syndrome.
  • Stifel's projection that endometriosis-related pain treatment elagolix will generate close to $2 billion in cash flows.
  • The analyst's view that little of Neurocrine's remaining pipeline is priced into the stock.  

"We expect Neurocrine to continue to diversify its pipeline with both in-house candidates and the consideration of small acquisitions or licensing arrangements," Matteis said. 

The Price Target

Neurocrine Biosciences shares have gained roughly 50 percent year-to-date. 

Related Links:

Attention Biotech Investors: Mark Your Calendar For These August PDUFA Dates

The Week Ahead In Biotech: Conferences, PDUFA Dates And IPOs

Latest Ratings for NBIX

DateFirmActionFromTo
May 2020Canaccord GenuityMaintainsBuy
May 2020MizuhoMaintainsNeutral
May 2020BarclaysMaintainsEqual-Weight

View More Analyst Ratings for NBIX
View the Latest Analyst Ratings

 

Related Articles (NBIX)

View Comments and Join the Discussion!

Posted-In: Paul Matteis StifelAnalyst Color Biotech Price Target Initiation Analyst Ratings General Best of Benzinga

Latest Ratings

StockFirmActionPT
OCGNHC Wainwright & Co.Downgrades
RPAYCanaccord GenuityMaintains26.0
TWLOOppenheimerMaintains230.0
SGENOppenheimerMaintains175.0
PFNXOppenheimerMaintains10.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com